Correlation Between VMware and Can Fite

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Can any of the company-specific risk be diversified away by investing in both VMware and Can Fite at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining VMware and Can Fite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VMware Inc and Can Fite Biopharma, you can compare the effects of market volatilities on VMware and Can Fite and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in VMware with a short position of Can Fite. Check out your portfolio center. Please also check ongoing floating volatility patterns of VMware and Can Fite.

Diversification Opportunities for VMware and Can Fite

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between VMware and Can is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc and Can Fite Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fite Biopharma and VMware is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VMware Inc are associated (or correlated) with Can Fite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fite Biopharma has no effect on the direction of VMware i.e., VMware and Can Fite go up and down completely randomly.

Pair Corralation between VMware and Can Fite

If you would invest  260.00  in Can Fite Biopharma on December 29, 2023 and sell it today you would earn a total of  20.00  from holding Can Fite Biopharma or generate 7.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy5.88%
ValuesDaily Returns

VMware Inc  vs.  Can Fite Biopharma

 Performance 
       Timeline  
VMware Inc 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days VMware Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, VMware is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Can Fite Biopharma 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Can Fite Biopharma are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Can Fite may actually be approaching a critical reversion point that can send shares even higher in April 2024.

VMware and Can Fite Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VMware and Can Fite

The main advantage of trading using opposite VMware and Can Fite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VMware position performs unexpectedly, Can Fite can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Can Fite will offset losses from the drop in Can Fite's long position.
The idea behind VMware Inc and Can Fite Biopharma pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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